Company X is a global financial services firm with approximately 56,000 employees occupying 888 locations throughout 39 countries. The majority of our buildings are pure office space. We also occupy data centers, trading floors, and roughly 600 branch offices. We have a Total Insured Value of approximately $11.5 billion. This includes Business Interruption values which we allocate to each and every location with the assistance of a forensic accounting firm. An exposure summary is provided in Appendix A.Additionally, Company Xs Property program currently conforms to Basel II requirements and has done so since 2008. The entire Property policy is fronted by Company Xs captive insurer which allows the commercial insurance panel to act in a reinsurance capacity. The current Property insurance program has a limit of USD1 Billion with all other property (AOP) deductibles of $500,000 per occurrence for property damage and $2,500,000 per occurrence for time element losses. Appendix B points out some of the many perils where the policy contains sub-limits. In addition, we utilize our captive insurer to buy down this deductible for our smaller offices around the world. They benefit from a $50,000 per loss deductible with a limit of $500,000.There are many insurance carriers utilized for this program. We enjoy long standing relationships with our Domestic, United Kingdom, and Bermuda markets. A challenging goal is to reduce the number of carriers in the primary layer. Even when capacity enables us to do this, our longevity with many carriers makes it difficult for us to actually eliminate them. This has proven to be difficult due to long-standing relationships and a recent claim payment. Company Xs Property/Business Interruption risk can be characterized as low frequency with high severity potential. Please refer to Appendix C for our loss history.

7. Appendix A

Total Insured Value		$11,596,310,082
	U.S.	40,878
	Americas (Non U.S.)	903
	EMEA	7,000
	APAC	6,109
	Japan	1,029
Total Number of locations		888
	Domestic	760
	Foreign	128
New York City (Manhattan)
	Total Insured Values	$3,588,706,920
	Total Number of Locations	25
London
	Total Insured Values	$1,301,225,101
	Total Number of Locations	11
Tokyo
	Total Insured Values	$217,066,521
	Total Number of Locations	5
California
	Total Insured Values	$445,547,165
	Total Number of Locations	94

7. Appendix B

Program Limit of Liability:

USD1,000,000,000 per occurrence as respects all perils and coverages except;

Perils with Sub-limits of Liability (does not include all):

• Named Windstorm

• Property in the course of construction

• Contingent Time Element

• Debris Removal

• Defense Costs

• Earth Movement

• Electronic Data Processing Equipment

• Extra Expense and Expediting Expense Combined

• Fine Arts

• Flood

• Ingress/Egress

• Civil or Military Authority

• Land and Water Contamination or Pollutant Clean-up

• Leasehold Interest

• Professional Fees

• Rental Insurance

• Service Interruption - Property Damage and Time Element combined

• Boiler and Machinery

Time Limits:

• Period for Automatic coverage

• Extended Period of Liability (Gross Earnings)

• Ingress/Egress

• Civil or Military Authority

Deductibles (AOP):

• USD500,000 per occurrence for Property Damage

• USD2,500,000 per occurrence for Time Element.

Sub-Deductibles (does not include all):

• Property in Transit

• Interruption by Civil or Military Authority

• Service Interruption

• Ingress/Egress

• Earth Movement in California

• Earth Movement in Japan

• Named Windstorm occurring in Tier I wind zones

• Special Flood Hazard Areas of 100 Year Flooding

• Appendix C

• Company Xs Property Claims Since 2004
  					Date of Loss	Location	Type of Loss	Gross Amount	Net Commercial Reinsurer Payment
  08/06/04	San Mateo, CA	Water Damage	$827,549.56	$327,549.56
  09/05/04	Florida Various Locations	Hurricane Frances	$728,379.00	$228,379.00
  04/24/05	NYC, NY	Generator Failure	$903,035.20	$403,035.20
  05/15/05	Brooklyn, NY	Oil Tank Spill	$1,971,809.57	$1,471,809.57
  10/24/05	Florida - Various Locations	Hurricane Wilma	$928,238.00	$428,238.00
  10/31/13	NYC and others	Superstorm Sandy	$24,000,000	$20,000,000
  Total			$29,359,011.33	$22,859,011.33

• you are an insurance broker. Introduce your company briefly to a client as a client executive? Explain what service fees you are charging and if there are different fees for different services. Is there any deal if the company agrees to buy a longer duration policy. what are the warranties and guarantees you can offer to the company? use the information from above?